How to not go into debt this Christmas?

December 2, 2020

Home / Blog / Debt, Financial
by Katie Weber

It’s beginning to cost a lot like Christmas! While it is lovely to give and receive gifts, it can put a strain on anyone’s budget, especially this year. At the same time, it’s getting late to save for Christmas. You can avoid the holiday spending hangover with some strategic planning; here are six great ways to avoid adding to your debt this Christmas.

Cut out extra spending and create a budget.

  • Not everyone has been saving for Christmas all year long. You can reduce your spending and create a budget to help you stay on track and minimize impulse Christmas purchases. 
  • Cut back on eating out, it may be tempting with all of the Christmas meals that restaurants have this time of year, but it will take a big hit into your budget the more you eat out. You can also reduce your grocery budget by only shopping for items on sale and buying generic instead of name brand.
  • When creating your Christmas budget, don’t only account for gifts, including food, drinks, and even decorations to it. The number one rule of budgeting is to stick to the budget, so make sure not to go over the budget if you can.

Put your rewards to use.

  • You can often exchange rewards points for gift cards, items, and even money off your groceries.
  • Take stock of your points and use them when creating your budget; you’ll be surprised by how much you can save when using them. 

Do secret Santa with the adults and only buy gifts for the kids.

  • Secret Santa is a great way to keep spending under control and only to shop for one person. You’ll be surprised how many people will prefer to do this than traditional gift-giving.
  • Secret Santa is a fun, light on the budget, and an easy way to show you care.

Start budget-friendly traditions.

  • Christmas traditions don’t have to cost a fortune to spread Christmas cheer, and many can be modified to fit anyone’s budget.
  • Christmas baking, holiday movies, Christmas light shows, decorating your home are all great ways to bring in the holidays’ festivities without breaking the bank.

DIY gifts.

  • You don’t need to spend a fortune to show those around that you care; home-made gifts are a great way to make something for someone that is one of a kind and is sure to love.
  • Gifts that can be used year-round like bath salts, cookies, hand-lettered signs, and candles are something that has a personal touch and is sure to be adored.

Remember the true meaning of Christmas.

  • Christmas is not about giving or receiving gifts but spending time in any way with those we love. After the year we have had, it is vital to show that those you love how much you care by phone, video chat, or other.
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